Author - Chelsea Aubin
Car payment, Water bill, utility bill, health insurance premiums, cell phone bill, mortgage payment, cable bill, gas card payment, groceries, and then throw in a student loan payment or two, and you have lots to manage. Obviously, other smaller items have been left off of the list, but the point is that when there are so many due dates to juggle, it can be and hard to keep up and stay on time and see how much debt you really have. One way to recover from the debt blues is consolidating your debt. There are a few things you can do to consolidate your debts in a better way.

One way to consolidate is by using credit cards. The idea is to take all of the credit cards that you have, and find the lowest interest rate among all of them. After you find the lowest interest rate, then try to transfer all of your balances over to that credit card. You will hopefully end up with one large balance, instead of many smaller ones, and you will only have one payment a month to make. You could also apply for a different card with a lower rate and do the transfer so that you only have two cards and just two payments. However, be cautious when applying for new cards as too much credit can cause a lower rating on your credit score.

Another route you can take is a home equity loan. With this kind of loan you borrow against the value of your home for a fixed amount and for a standard period of time. Usually these loans have lower rates and lower payments, and if you itemize on your taxes the interest can be tax deductible. You might also choose to refinance your home and use part of the funds in order to payoff some of your bills. Another type of loan is a personal security loan. This loan can be more difficult because the only thing that you are bring to the table for a guarantee is your signature. Since these loans are riskier it is likely that such a loan will be more expensive, and you will probably be repaying that loan for an average of 10 to 15 years. The personal loans can be even harder to secure if you have a substantial level of debt.

You might want to seek counseling for your debt, but a credit counselor does not consolidate your debt, but rather they will help you work out a better payment schedule for you to follow. You will make one payment to the consolidation agency and they will in turn pay your bills on your behalf. However, this service is usually not for free, so make sure that you are unable to manage your finances yourself before enlisting the help of a professional.

Many people are now considering the debt settlement route. This alternative is when you stop making payments on your bills and the creditors contact a debt settlement company rather than calling you. The debt settlement company will try to deal with the creditors for you and they can typically reduce the amount of your balances, sometimes significantly. Many people are able to become debt free within a couple years of hiring one of these service

Debt can accumulate up quickly and overrun you before you realize what is happening. Before your debt gets totally unmanageable take time to investigate some of the different solutions available. Ask other people who may have been in a similar circumstance and get a few recommendations about how they resolved their debt problems.